Reflection AI CEO Misha Laskin warned that Chinese labs selling open models abroad will also start selling chips and data centers, locking allied nations into Chinese infrastructure; he was describing what he expects, not what has happened. Nvidia already leaves China out of its outlook after China revenue, including Hong Kong, fell to $19.7 billion in fiscal 2026 from $25.0 billion, so the new risk lies in customers outside the US and China, about a fifth of its $215.9 billion fiscal 2026 revenue. Management says supply limits growth through fiscal 2028, but cheaper Chinese compute could later hurt growth and pricing, with gross margin easing to 71.1% in fiscal 2026 from 75.0% in fiscal 2025. The stock trades at 17x forward earnings, its lowest in five years and less than half its 36x average, and the author argues the market already prices in a sharp slowdown after fiscal 2028, so the drop looks like an opportunity.
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NVDAsemiconductorsChinaartificial intelligence
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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